CalendarC CengageNOWv2 | Online teaching and learning resource from Cengage LearningCash Dividends on Common StockWildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Wildebeest had 320,000 issued and outstanding shares. On July2, Wildebeest repurchased 4,610 shares of its common stock at $28 per share. On March 1 and September 1, Wildebeest declared a cash dividend of $1.10 per share. Thdividends were paid on April 1 and October 1.Required:1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank.Mar. 1Sept. 12. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank.Аpr. 1Oct. 13. Conceptual Connection: Explain why the amounts of the two dividends are different.The number of shares outstandingdue to the purchase of treasury stock on July 2.(PreviousNextChorkMLMindamore Check.MWorkuses.cemaiping.

Shares purchased as Treasury stock is not outstanding. So , no Dividend is declared on shares…

Answered: Cash Dividends on Common Stock

Business

Accounting

Cash Dividends on Common Stock

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The cash dividend is paid based on the number of shares: a. On circulation b. Authorized c.…

A: Cash dividend refers to funds paid to shareholders which constitutes part of company's present…

Q: Explain the different types of preferred stock dividends and their effect on book value per share.

A: Preferred stock: Preferred stock have a preference to receive dividend than before any common…

Q: What are the sources of gains for bondholders Interest payments Dividends Stock split Capital gains

A: Bondholders An investor or the owner of debt instruments, which are frequently issued by…

Q: Journalize treasury stock transactions

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: When a company issues STOCK DIVIDENDS, what happens to the market value of its stock and what…

A: A company sometimes issue stock dividends in which instead of paying the shareholders cash dividends…

Q: True or False Treasury stock is reported in the stockholders' equity section of the balance sheet.

A: Treasury stock is the amount of stock repurchased from open market. It will reduce stockholders…

Q: Define the term "treasury stock." What are the reasons for a company to purchase treasury stock?…

A: Here is the answer :

Q: What are stock dividends and stock splits?

A: Stock dividend: It is a dividend installment made in shares instead of as money to investors. The…

Q: What effect do stock dividends or stock splits have on thecomputation of the weighted-average number…

A: Stock split and stock dividend: Stock dividend refers to a distribution of stock of the company to…

Q: If stock is issued above par, what other equity account can be credited? Choices: common stock…

A: Paid-in capital is the sum of capital "paid in" by speculators amid common or preferred stock…

Q: How do cash dividends affect the realized rate of return from investing in shares of common stock

A: Cash dividends are distribution of profits earned by a company is cash. These are inflows for…

Q: Define stock dividend.

Q: How do stock dividends and splits affect stock prices?

A: Answer: Unlike cash dividends, stock dividends and stock splits also influence the market price of a…

Q: Which of the following statement is CORRECT regarding Job order cost accounting system? O Under the…

A: In the context of the given question, we are required to find the correct option from the available…

Q: How is EPS calculated? a) Operating profit divided by the average number of common stock shares…

A: Solution:- Earnings per share (EPS) means that how much amount of profit the company has earned for…

Q: Discuss the similarities in dividends, share repurchases, and stock splits/stock dividends.

A: Stock Dividend: Dividend payments to shareholders provided in the form of stock rather than cash are…

Q: Describe how cumulative preferred stock differs from noncumulative preferred stock. How is a…

A: Cumulative preferred stock is a type of preferred stock with a provision that stipulates that if any…

Q: Explain how Stock Splits Effected in the Form of Stock Dividends.

Q: While the discounted dividend model values a company’s stock based on its dividends, the corporate…

A: The model that evaluates a firm based on its dividends payout to the investors is known as the…

Q: Using the percentage method for manual payroll with W 4s from 2020 or later in Appendix C calculate…

A: Withholding amount is the amount of tax hold from the part of the income. The amount is calculated…

Q: Compute the book value per share of the common stock.

Q: Why Shares repurchased and not retired are referred to as treasury stock?

A: Treasury stock is also known as treasury shares or reacquired stock. It refers to that previous…

Q: How did you solve for shares outstanding and stockholders equity for "Before any Dividends"?

A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…

Q: What is a stock dividend? How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: paid in capital includes the following except preferred stock par value common stock par value…

A: Solution:- paid in capital includes the following as follows under:-

Q: Which of the following statements about stock dividends is true? Multiple Choice O Stock dividends…

A: Stock dividends: It can be defined as the payment of dividends to the shareholders in the form of…

Q: How do I calculate the net abount of stock issued when the firm pays X amount of dollars in…

A: Company give dividends out of net income to shareholders to reward shareholders So that they…

Q: How to report treasury stock in financial statements

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Cash dividends are paid based on the number of shares to. outstanding. b. issued (issued). C.…

A: Dividends is paid to the share holders for the money which is being invested in the company as share…

Q: investment own shares account

A: The process for initially recording business transactions in the books of accounts is known as a…

Q: Compute number of shares outstanding after the stock dividend. Number of shares outstanding

A: Stock dividend means a payment given to the shareholders in shares instead of a cash payment. Stock…

Q: Define the term Large Stock Dividends.

A: Dividend: It is a distribution of profits by a corporation to their shareholders. When a company…

Q: Do preferred stockholders receive the share of the company earnings before or after bond interest is…

A: Preference Stockholders are entitled to receive fixed amount of dividend from the company and enjoys…

Q: Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown…

A: Treasury stocks are the shares which are reacquired by the company that are already issued to the…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Calendar
C CengageNOWv2 | Online teaching and learning resource from Cengage Learning
Cash Dividends on Common Stock
Wildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Wildebeest had 320,000 issued and outstanding shares. On July
2, Wildebeest repurchased 4,610 shares of its common stock at $28 per share. On March 1 and September 1, Wildebeest declared a cash dividend of $1.10 per share. Th
dividends were paid on April 1 and October 1.
Required:
1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank.
Mar. 1
Sept. 1
2. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank.
Аpr. 1
Oct. 1
3. Conceptual Connection: Explain why the amounts of the two dividends are different.
The number of shares outstanding
due to the purchase of treasury stock on July 2.
(Previous
Next
ChorkMLMind
amore Check.MWorkuses.cemaiping.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Important Note :

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Diaherenciate Between treasury stock cliviedend, steck split Cash dividend and stock with exaumples
What are dividends? Do all stocks pay dividends?
Differentiate between the stock dividend and stock split and their effects on the stock prices.
Write down the reasons for stock dividend.
b. Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock
Indicate whether statements regarding dividends is true or false. Stock dividends help keep the market price of stock affordable.
Describe the accounting for the issuance for cash of noparvalue common stock at a price in excess of the statedvalue of the common stock
What does a large stock dividend known as?
What are the differences between common stocks and preferred stocks in terms of the rights of stockholders and dividend characteristics?
What is the impact of treasury stock on the presentation of stockholder’s equity? Treasury stock is added to paid-in capital, subtracted from common stock, and added to retained earnings. Treasury stock is subtracted from paid-in capital, common stock, and retained earnings thereby reducing stockholder’s equity. Treasury stock is subtracted from paid-in capital, added to common stock, and retained earnings. Treasury stock is added to paid-in capital, common stock, and retained earnings thereby increasing stockholder’s equity. Stockholders’ equity can increase due to: Inventory is increased. Retained Earnings decrease. Dividends are distributed. Stock is issued and common stock is increased. The Cash Dividends Payable account incurs a liability when: On the record date. On the last day of the period. On the payment date. On the declaration date. provide the correc answer and explain what ciorrect choices